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Unit 4 Staff Learning goals Explain the importance of staff performance. Introduce some means to motivate staff performance. Understand how to make use of competition in motivating staff performance through reading a case story. Structure Lead-in Professional reading Case story Further reading 1. Lead in words explanation performance appraisal/assessment/evaluation promotion prospects evaluation form evaluation system peer evaluation self evaluation 360-degree feedback employee development incentive program on-the-job employee training 2. Professional reading Assessing Performance Assessing an employee’s performance—his or her strengths and weaknesses on the job—is one of the most difficult tasks for managers. However, performance appraisal is crucial because it gives employees feedback on how they are doing and what they need to do to improve their performance. It also provides a basis for determining how to compensate and reward employees, and it generates information about the quality of the firm’s selection, training, and development activities. Performance appraisals may be objective or subjective. An objective assessment is quantifiable. For example, a Century 21 real estate agent might be judged by the number of houses she has shown or the number of sales she has closed. A company can also use tests as an objective method of assessment. Whatever method they use, managers must take into account the work environment when they appraise performance objectively. One popular tool used in subjective assessment is the ranking system, which lists various performance factors on which the manager ranks employees against each other. Although used by many large companies, ranking systems are unpopular with many employees. Qualitative criteria, such as teamwork and communication skills, used to evaluate employees are generally hard to gauge. Another performance appraisal method used by many companies is the 360-degree feedback system, which pr
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